Modern features of regulation: evolution of the concept and the changing role of government economic policies

The term "regulation" migrates from one science to another, getting new qualitative characteristics thereby giving rise to a new range of problems for the comprehension of the contradictions of regulation. In this regard, there is a growing need in the study and synthesis of the theories of regulation and regulatory changes from the position of integrity and directions of improvement of state economic policy. Three approaches are suggested describing the prerequisites of regulation - interest, ideas, institutions. The interdisciplinary study of regulation theories allowed identifying the diverse problematic field of regulation: social welfare growth and public interest protection; collective actions of interest groups and competition between them, interaction between interest groups and the state; patterns of collective decision-making and the problem of choice based on selfishness of behavior, differences in incentives, constraints and level of democratization; the choice between alternative real institutional mechanisms of regulation. Regulatory changes suggest the transformation of regulation impulse from problem solving (awareness of the contradictions between the different needs and opportunities, between reality and the possible state) and order (existence of specific requirements) of regulatory process participants into new ideas. This led to a radical change of the role of state regulation in the economic policy of developed countries of the world: expansion of the membership of regulation from state institutions to market, public and supranational institutions; formation of a hierarchical system of decision making at various levels of management; changing of interaction between the participants of the regulatory process in delegating authority, distribution of responsibility (liability), benefits, costs and risks of regulatory impact; emergence of new and presumably less costly forms of regulation as alternatives to state regulation (self-regulation, co-regulation, quasi-regulation); introduction of procedural mechanisms providing expert examination, accountability and transparency of economic and social regulation; institutional design intended to ensure cooperation and reducing transaction costs of institutions in the process of interaction to achieve the flexibility of state economic policy. Ultimately, the main trends of the theory and practice of regulation is to identify the institutional transformations, procedures for creating incentives to achieve social, economic and political effectiveness, rule of law and improve the credibility of state economic policy.

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